Truck industry 2020: The future is global - Roland Berger

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34 | Automotive Competence Center Organization > Collaboration between OEMs will increasingly be necessary to enable market players to complement in-house technology with local market expertise, say, as well as to help them cut costs > A global truck concept demands a global organization. In other words, engineering, purchasing and other key functions must be genuinely and fully integrated around the world > Resources can and must remain geographically distributed even where they are unified on an organizational level. Resources might be physically located in Japan, Europe and the NAFTA region, for example, but still belong to the same organizational unit. Closer integration and the exchange of staff are crucial in this context At the same time, our interviewees indicated a clear regional focus in the area of manufacturing. This indeed makes eminent sense as a way to combine the benefits of the aspects of globalization outlined above with local preferences and requirements, specific content issues and varying legal requirements. Branding is a more complex issue, one that must be addressed very carefully by every OEM that is committed to going global. The coordination between parent and sub-brand is esssential for success. Brand platforms are necessary to consistently position all brands across regions. Brand extension and endorsement rules that are standardized and implemented systematically will help optimize business while clearly differentiating brands and maximizing platform synergies (through batching, for example). Service offerings must be coordinated within each group. In particular, servicing different segments under one and the same brand will prove to be a stiff challenge. As a general rule, brand organizations that want to meet global requirements must become more professional and achieve a healthier balance between central guidance and regional authority. This will also impact component strategies. Most components are already suited to multi-regional deployment. As shown in Figure 19, the share of truly global components will nevertheless increase significantly. This will happen mainly in relation to powertrains (engines and transmissions) and electrical/electronic and software components. Regional differences will diminish more slowly for cab/body and interior components.
35 | Truck industry 2020: The future is global The road to globalization will not be an easy one, either for OEMs based in the triad economies or for their peers in emerging markets. As this study clearly shows, however, there is little alternative. It is therefore expedient for manufacturers in the developed and the developing world to proceed with caution, giving due attention to the many issues they will need to resolve along the way, and calling on outside expertise as and when necessary. An example: Most major established triad OEMs have entered developing markets with their own brands. To compete in all segments, they will need new brands as well. And as every seasoned OEM knows, multibrand strategies present their own unique challenges and must be extremely well thought through. For triad OEMs, moving into the low-cost segment of an emerging market sounds – and is – an exciting prospect. Here too, however, a special business model is required. As we saw earlier, it is imperative to weigh the associated risks very carefully indeed. Targeting new segments and new regional markets while adapting one's business model at the same time is no mean feat by anyone's standards.
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Truck industry 2020: The future is global - Roland Berger

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